HUL fights costs with price hikes, raises volume game

Volume growth of 6% is highest in 15 quarters; net profit grows 21.3% in Q4

- Neethi Lisa Rojan

Hindustan Unilever Ltd's (HUL) volume growth surged to a 15-quarter high of 6% in the January-March quarter (Q4), even as it flagged escalating input costs linked to the West Asia conflict and initiated selective price hikes.

India's biggest fast-moving consumer goods (FMCG) company reported a 21.3% rise in net profit to ₹2,994 crore, and 7.6% growth in revenues to ₹16,351 crore in Q4. The results exclude the demerger of the Kwality Walls ice-cream business in 2025.

The performance beat Bloomberg consensus estimates of ₹2,612 crore in profit and ₹16,270 crore in revenue.

Earnings before interest, tax, depreciation and amortization (Ebitda) in the fourth quarter rose 6% to ₹3,841 crore, while margins edged down 50 basis points to 23.7%. The company expects fiscal year 2027 (FY27) to outperform FY26, with margins in the 22.5-23.5% range.

Growth for the maker of brands such as Lux and Lakmé was driven by premiumization and improving urban demand, with higher-margin segments contributing disproportionately to revenue.

However, the company has begun taking price increases to offset rising input costs. “We are taking calibrated pricing action in the range of 2-5%,” chief financial officer Niranjan Gupta said in a post earnings briefing on Thursday.

“For consumers in the short term, we may see some rebalancing between volume and price growth.”